Officially, Windows Virtual PC is "the latest Microsoft virtualization technology that allows you to run many productivity applications on a virtual Windows environment, with a single click, directly from a Windows 7-based PC." It replaces Microsoft Virtual PC 2007, with the addition of a number of features including drive sharing, USB drive support, and Windows Explorer. It also serves as the runtime for the virtual Windows XP mode that will work with Windows 7.

The software does require Windows 7, however, as well as an AMD or Intel microprocessor with hardware virtualization support.